Best UK business loans for manufacturing
Manufacturing is capex-heavy and order-led. Asset finance against plant and machinery dominates over unsecured term loans. Mainstream lenders that understand engineering / production cashflow win this segment.
Founder & Managing Director, Muswell Rose, FundBiz
Adam is the founder and managing director of Muswell Rose and a founder of Best Business Loans Ltd, the company behind FundBiz. His background runs through commercial finance, mortgages and fintech, including as managing director of an invoice finance business. He oversees FundBiz's specialty finance comparison and the logic behind how businesses are matched to lenders.
Last reviewed: 12 June 2026
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SME term loan + commercial mortgage · £150k to £5m · 5 to 10 business days
Asset finance + commercial mortgage stack for owner-occupied manufacturers.
Read full Allica Bank review → -
SME term loan + bridging · £500k to £50m+ · 7 to 14 business days
Bespoke deals for £500k+ tickets including acquisition and capacity expansion.
Read full OakNorth review → -
Term loan · £10k to £500k · 1 to 3 business days
Term loans for working capital alongside asset finance.
Read full Funding Circle review → -
Flexi-loan / line of credit · £1k to £500k · Same day to 24 hours
Flexi-loan for raw-material cashflow gaps.
Read full iwoca review →
Side-by-side comparison
| Lender | Typical rate | Ticket | Decision | Best for |
|---|---|---|---|---|
| Allica Bank | From 7.99% APR | £150k to £5m | 5 to 10 business days | Asset finance + commercial mortgage stack for owner-occupied manufacturers. |
| OakNorth | Bespoke | £500k to £50m+ | 7 to 14 business days | Bespoke deals for £500k+ tickets including acquisition and capacity expansion. |
| Funding Circle | 6.9% to 26.9% APR | £10k to £500k | 1 to 3 business days | Term loans for working capital alongside asset finance. |
| iwoca | From 2% per month | £1k to £500k | Same day to 24 hours | Flexi-loan for raw-material cashflow gaps. |
What is the best business loan for a UK manufacturer?
For plant, machinery and vehicles, asset finance from Allica Bank, Aldermore or specialist providers. For owner-occupied facilities, an Allica or Shawbrook commercial mortgage. For working capital across order cycles, an iwoca flexi-loan or Funding Circle term loan.
How does asset finance work for UK manufacturers?
Hire purchase: pay deposit, fixed monthly payments, own the asset at end of term. Lease: pay monthly, lender owns the asset. Both treat the asset as primary security, so credit and turnover hurdles are lower than unsecured term lending.
Can UK manufacturers refinance existing equipment to release cash?
Yes, via sale and leaseback. Lender buys the existing asset from you, leases it back. Frees up balance-sheet cash. Allica, Aldermore and most specialist asset-finance lenders offer this on plant, vehicles and yellow goods.
What turnover does a UK manufacturer need for £500k+ funding?
For mainstream lenders, expect £2m+ annualised turnover and 3+ years of filed accounts for a £500k unsecured term loan. For asset-backed deals (asset finance, commercial mortgage), the asset is the gating factor, not turnover. OakNorth handles bespoke £500k to £50m deals.
Are there grants for UK manufacturers in 2026?
Yes. Innovate UK funds R&D and process innovation. Made Smarter offers digital adoption grants for SME manufacturers in eligible regions. Local growth funds support capacity expansion in target sectors. Grants typically require matched private funding.
How we ranked these
We weight asset finance and refinance (35%), manufacturing sector underwriting (20%), eligibility breadth (15%), decision speed (15%), post-decline acceptance (15%). Rankings reflect our published editorial methodology, not any commercial arrangement. See our /methodology/ for the full basis.
Methodology weights
Weights specific to "Best UK business loans for manufacturing":
- Asset finance and refinance35%
- Manufacturing sector underwriting20%
- Eligibility breadth15%
- Decision speed15%
- Post-decline acceptance15%
Read the full methodology for how we score and rank every lender on the FundBiz panel.
Also considered
- Aldermore (asset finance)
- Time Finance
- Specialist manufacturing-equipment lenders
Not for
Sole-trade manufacturers without filed accounts; new-build manufacturers under 18 months.
Check eligibility in two minutes
Tell us ticket size, trading history and sector. We match you against the FundBiz specialty panel and surface the lenders most likely to approve your file, including post-decline routes. Limited companies, LLPs and partnerships of 4+.
Open the eligibility checker →Reviewed by Oliver Mackman, Director, Best Business Loans Ltd. Last reviewed: 2026-06-12. Editorial by Best Business Loans Ltd (16833937).